Companies

Multiples to acquire two hospitals, one home care company

K Giriprakash Bengaluru | Updated on September 27, 2019 Published on September 27, 2019

Vikram Hospital was started in 2009 but had run into financial losses because of wrong positioning.   -  File photo

Multiples is a PE fund which runs the Bengaluru-based Vikram Hospital

Multiples, a PE fund which runs the Bengaluru-based Vikram Hospital plans to invest Rs 250 crore - Rs 300 crore to acquire two hospitals and a home care company.

Dr Somesh Mittal, Vikram Hospital MD and CEO, told BusinessLine that one of the two hospitals will be fully acquired while a majority stake will be acquired in another hospital. It has also identified a home care company for acquisition.

The high-end Vikram Hospital, which was set up in 2009, was fully acquired by Multiples by 2017. “We have completely turned around the operations and the hospital is now profitable,” Dr Mittal said.

The hospital ran into heavy losses before Multiples bought a minority stake initially before acquiring it fully. “The initial Capex to operate a hospital is very high and it takes more than five years before one starts seeing the returns,” he pointed out.

Dr Mittal said that a mid-sized 150-200 bed hospital is good enough for the city. The average cost of a hospital bed in Bengaluru is worth about Rs 65 lakh though it may go up depending on location and equipment.

Vikram Hospital was started in 2009 but had run into financial losses because of wrong positioning. "We changed the positioning of the hospital and allowed access to patients who have insurance cover. We also cleaned up the books, initiated several measures to raise the quality of health care," Dr Mittal said.

Published on September 27, 2019
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